DOWNERS GROVE, Ill., Jan. 19 /PRNewswire-FirstCall/ — Hub Group, Inc.
(Nasdaq: HUBG) announced today that it has entered into a definitive agreement
to acquire the assets of Comtrak, Inc. The purchase is expected to be
accretive to Hub’s results of operations in 2006. Hub will hold a conference
call at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on January 20 to
discuss the transaction.
Comtrak is a transportation industry leader whose services include rail
and international drayage for the intermodal sector, full truckload
transportation, container storage, yard management, truck brokerage and other
logistics services. Comtrak was established in 1983 and is headquartered in
Memphis, Tennessee. It has 381 employees and fifteen terminals located
primarily in the southeastern United States. Comtrak utilizes company drivers
and third-party owner operators to serve its customers. Comtrak revenues are
expected to be about $85 million in 2005.
Hub will pay $38 million in cash at closing, which is expected to occur
during the first quarter of 2006. The purchase price will be subject to
adjustment based on Comtrak’s working capital at closing. In addition, the
agreement provides for an earn-out for 2006 and 2007, consisting of two cash
payments, each of which will not exceed $5 million. The closing is subject to
certain customary closing conditions and approvals.
David P. Yeager, Hub’s CEO, commented, “We are very excited about adding
this high quality organization to Hub. We have worked with Comtrak for more
than 20 years and believe this is the best drayage company in the country.
This acquisition makes Hub a stronger company and a more formidable competitor
for a number of reasons. First, the acquisition is consistent with our
strategic plan which calls for Hub to increase the amount of local trucking
(or drayage) we perform. Second, Comtrak performs drayage for the
international intermodal market. This transaction will provide us with an
immediate proven entry into this market. Third, Comtrak also has innovative
technology, which we can leverage in our existing drayage business. Finally,
I expect this transaction to be accretive to the consolidated operations of
Hub Group, Inc. in 2006 and in the future.” Yeager finished his comments by
saying, “We welcome the Comtrak employees, owner operators and customers and
look forward to serving the market with the combined resources of Hub and
Hosting the conference call will be David P. Yeager, Vice-Chairman and CEO
and Thomas M. White, Senior Vice-President, Chief Financial Officer and
This call is being web cast by Thomson/CCBN and can be accessed through
the Investors link at Hub Group’s Web site at https://www.hubgroup.com or
individual investors can access the audio web cast at http://www.earnings.com
and institutional investors can access the web cast at
http://www.streetevents.com . The web cast is listen-only. Those interested
in participating in the question and answer session should follow the
telephone dial-in instructions below.
To participate in the conference call by telephone, please call ten
minutes prior to the call by dialing 1-866-700-6293. The conference call
participant code is 45571659. The call will be limited to 60 minutes,
including questions and answers.
An audio replay will be available through the Investors link on the
Company’s Web site at https://www.hubgroup.com . This replay will be available
for 30 days.
ABOUT HUB GROUP: Hub Group, Inc. is a leading non-asset based freight
transportation management company providing comprehensive intermodal,
truckload brokerage, logistics and distribution services. The Company
operates through a network of over 30 offices throughout the United States,
Canada and Mexico.
ABOUT COMTRAK: Comtrak is a leading provider of international and
domestic intermodal drayage and also offers regional full truckload and
related logistics services. The Company’s operations are conducted through
fifteen terminals including their headquarters in Memphis Tennessee. The
terminals provide customer support and a home base for company drivers and
owner operators. Comtrak’s web address is http://www.comtrakinc.com .
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that
are not historical, including statements about Hub Group’s or management’s
intentions, beliefs, expectations, representations, projections, plans or
predictions of the future, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are inherently uncertain and subject to risks. Such statements
should be viewed with caution. Actual results or experience could differ
materially from the forward-looking statements as a result of many factors.
Factors that could cause actual results to differ materially include the
factors listed from time to time in Hub Group’s SEC reports including, but not
limited to, the annual report on Form 10-K for the year ended December 31,
2004 and our reports on Form 10-Q for the periods ended March 31, 2005, June
30, 2005 and September 30, 2005. Hub Group assumes no liability to update any
such forward-looking statements.
SOURCE Hub Group, Inc. -0- 01/19/2006 /CONTACT: Renee Jurczyk of Hub Group, Inc., +1-630-271-3611/ /Web site: https://www.hubgroup.com http://www.comtrakinc.com / (HUBG) CO: Hub Group, Inc.; Comtrak, Inc. ST: Illinois, Tennessee IN: TRN SU: TNM CCA JK-CS -- CGTH021 -- 6309 01/19/2006 16:30 EST http://www.prnewswire.com